I am selling my iMac, but what about resetting the computer?

i am putting my 21.5" imac up for sale, but it has been recently upgraded to osx lion. i want to reset to factory defaults so that the new user can operate the mac like new, but want to keep the new software. is this possible?

Just to expand a bit: the license for Lion purchased from the app store is NOT transferable, so that is the reason you need to wipe the drive and reinstall the original system. Legally and since you'll be erasing it, you could keep a copy of your system if you like since you paid for your license, but - if you're buying a new Mac, it'll be already installed, so there's not much reason to keep it.

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